If a firm is a natural monopoly, its
a. long-run average cost declines over the full range of market demand
b. long-run average cost increases over the full range of market demand
c. fixed cost declines over the full range of market demand
d. fixed cost increases over the full range of market demand
e. long-run average cost declines and marginal cost rises over the full range of market demand
A
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Refer to Figure 4-1. If the market price is $2.00, what is the consumer surplus on the first burrito?
A) $0.50 B) $1.00 C) $2.00 D) $7.50
The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary monetary policy. b. Discretionary fiscal policy. c. Widely different inflation rates in the two nations. d. Very different real GDP growth rates in the two nations. e. Many goods and services in the two nations' price indices are not traded internationally.
If, at the current price, there is a shortage of a good, then
a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.